FirstRand's unique proposition

Background
FirstRand represents a very different proposition to its peers in that it is the only fully integrated financial services group in South Africa . It is also the only one of the big-four South African retail, commercial and investment banking groups that is “owner-managed”. The three original founders, GT Ferreira, Paul Harris and Laurie Dippenaar are all still actively involved in the management of the Group and collectively management own 23% of RMB Holdings Limited which in turn owns 29.5% of FirstRand Limited.

A unique structure
Through its ownership of First National Bank, Momentum, Rand Merchant Bank, WesBank and Discovery the Group can operate in almost every area of the financial services arena.

The Group is structured as a confederation of profit centres that serve the various parts of the financial services market. This structure is successful because it allows FirstRand to function as a number of small focused businesses that can find and swiftly exploit profitable niches, whilst at the same time enjoy the financial muscle and operational critical mass of the Group.

Each profit centre has its own strategy and its own highly motivated management team often supported by its own individual brand, specifically designed and positioned to service that particular customer base.

The significant balance sheet of the Group provides financial credibility to these individual businesses and the capital required to operate and grow. In addition, FirstRand's integrated structure allows each business to leverage off all the different building blocks available across the Group, such as IT systems, client bases and skills. This is referred to in the Group as “collaboration” and in the past two years significant top line growth has been created through the various businesses working together.

And a unique business philosophy
The FirstRand business philosophy has been home-grown, developed and ingrained into the Group over the past 25 years and it has its roots in an entrepreneurial culture.

At its heart is the understanding that people are the single most important resource and FirstRand aspires to create an environment that attracts and retains entrepreneurial self-starters.

Although there is a bias for action, the Group aspires to act within the context of clearly thought through strategic and operational plans, hallmarked by innovative thinking which makes bottom line sense.

Participative, non-hierarchical decision making in the context of vigorous debate of the business case, with no holy cows and no barriers to communication, lies at the core of the way it does business.

This is the common value system on which the entire group operates. This philosophy creates a liberating owner-manager culture. Strategies are owned and delivered on by the profit centre leaders because they conceived them.

Every one of the Group's many profit centers has a strategy to grow market share, revenues and earnings. Each CEO is empowered and incentivised to deliver better than his/her budget at the end of the year.

The structure and business philosophy means that FirstRand has many growth stories for 2005 and onwards.